NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $.35 a share. The following dividends will be $.40, $.55, and $.85 a share annually for the following three years, respectively. After that, dividends are projected to increase by 2.7 percent per year. How much are you willing to pay today to buy one share of this stock if your desired rate of return is 8 percent?]

Answers

Answer 1

Answer:

$13.84

Explanation:

Find the present value (PV) of each year's dividend;

PV( of D1) = 0.35 / (1.08) = 0.3241

PV( of D2) = 0.40 / (1.08²) = 0.3429

PV( of D3) = 0.55 / (1.08³) = 0.4366

PV( of D4) = 0.85 /(1.08^4)  = 0.6248

Find PV of terminal cashflow;

D5 = D4(1+g) = 0.85(1.027)  = 0.8730

PV( of D5 onwards)= [tex]\frac{\frac{0.8730}{0.08- 0.027} }{1.08^{4} }\\ \\ =\frac{16.4717}{1.3605}[/tex]

PV( of D5 onwards) = 12.1071

Sum up the PVs to find the price per share;

= 0.3241 + 0.3429 + 0.4366 + 0.6248 + 12.1071

= 13.836

Therefore, you should pay $13.84


Related Questions

Proper segregation of functional responsibilities calls for separation of:
A. ​custody, execution, and reporting.
B. ​authorization, recording, and custody.
C. ​authorization, payment, and recording.
D. ​authorization, execution, and payment.

Answers

Answer:

C. ​authorization, payment, and recording.

Explanation:

This is on the principle of segregation of duties as a measure of internal controls. This principle requires that duties are properly separated to ensure that the risk of misstatement and misrepresentations due to fraud or error are mitigated.

For a good system of internal control for which the principle of segregation of duties is applied, one person should not be allowed to initiate, authorize, pay and record transactions. This is to ensure that errors or acts of fraud made by one party involved in the process is prevent, or  detected by another and is corrected.

As such, the right option is C. ​authorization, payment, and recording.

A stock can earn a return of 2%, 20%, or 8%. The stock’s distribution is known, and states that there is a 30% probability of the stock earning a return of 2%, a 36% probability of the stock earning a return of 20%, and a 34% probability of stock earning a return of 8%. What is the variance of the stock’s return?Select one: a. .0056 b. .0923 c. .0061 d. .078 e. .0748

Answers

Answer:

option (a) 0.0056

Explanation:

Data provided in the question:

Return that can be earned :   2%      20%       8%

Probability of returns :          30%      36%       34%

Now,

Average return, m = [tex]\frac{2\% + 20\% + 8\%}{3}[/tex] = 10%

Return (X)     P(X)     X - m                    ( X - m )²     ( X - m )² × P(X)

     2%          30%    -8% = -0.08           0.0064               0.00192

     20%        36%    10% = -0.10           0.01                       0.0036

     8%          34%    -2% = -0.02           0.0004               0.000136

Thus,

Variance of the stock’s return = ∑ ( ( X - m )² × P(X) )

= 0.00192 + 0.0036 + 0.000136

= 0.005656 ≈ 0.0056

Hence,

The correct answer is option (a) 0.0056

Final answer:

The variance of the stock's return is found by calculating the expected return and then summing the squared deviations of each return from the expected return, multiplied by their respective probabilities. The right answer is option (b) .0923.

Explanation:

To calculate the variance of the stock's return, we need to first find the expected value (mean return) of the stock, and then use this to calculate the variance. The expected return is calculated as the sum of the products of each return and its associated probability:

Expected return (E) = (2% * 30%) + (20% * 36%) + (8% * 34%)

Next, we calculate the variance by finding the squared deviation of each return from the expected return, multiplying by the probability of that return, and summing these values:

Variance = (30% * (2% - E)^2) + (36% * (20% - E)^2) + (34% * (8% - E)²)

After calculating, we will see that the correct option from the provided list is (b) .0923, assuming there are no calculation errors.

. Determine which market the following industries fit in. Choose from purely competitive, monopoly, oligopoly or monopolistic competition. Explain your choice.

a. Corn farming
b. Grocery stores
c. Electric companies
d. Automobile manufacturing

Answers

Answer:

a. Purely competitive

b. Monopolistic Competition

c. Monopolistic Competition

d. Oligopoly

Explanation:

a. Corn farming is a purely competitive market as there is a large number of producers selling the homogenous good i.e corn.  

b. Grocery stores are an example of monopolistic competition as there is a large number of sellers providing differentiated products.  

c. Electric companies are also an example of monopolistic competition as there is a large number of companies providing differentiated products.  

d. Automobile manufacturing is an oligopoly market, there are few large firms dominating the market. These firms are producing slightly differentiated products and are interdependent.

Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $450 per month plus $75 per job plus $10 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in September to be 27 jobs and 146 meals, but the actual activity was 23 jobs and 143 meals. The actual cost for catering supplies in September was $3,435. The catering supplies in the planning budget for September would be closest to:

Answers

Answer:

$3,935

Explanation:

The computation of the catering supplies are shown below:

= Catering supplies + monthly cost for each job × number of jobs + monthly cost for per meal × number of meals

= $450 + $75 × 27 jobs + $10 × 146 meals

= $450 + $2,025 + $1,460

= $3,935

We simply added the catering supplies cost, meal cost, and the job cost so that the accurate value can come

All other information which is given is not relevant. Hence, ignored it

You had your first child recently. You would like to set aside some funds so that your child will be able to attend the University of Texas as an undergraduate without taking on any student loans. Total costs of attendance for undergraduate students currently amount to $28,000 per year and are expected to continue to grow at a 2.5% growth rate per year. Assume that the four-year college expenses for the first year of college need to be paid exactly 18 years from today and that the subsequent costs need to be paid at an annual frequency 19, 20, and 21 years from today. You would like to make 18 equal annual payments starting today to your child’s college savings account to be able to cover the expected college costs. The savings are invested in risk-free Treasury securities that offer a return of 2%. How large are the equal annual contributions to the college savings account over the next 18 years?

Answers

Answer:

Equal annual contributions to the college savings account over the next 18 years is : $4,745.6

Explanation:

Suppose the time the child was born is the Beginning of Year 0 (Y0). So, 18 equal contributions need to be made at the beginning of each year from Y0 to Year 17. Denote these cash flow as Annuity 1 which equal: ( C/ 2%) x ( 1.02^18 -1) = 21.4123 x C with C is the equal annual contribution

The tuition fee starting from the beginning of Year 18 end at the Beginning of Year 21 is a growing annuity at 2.5% growth rate. The Value of this annuity ( Annuity 2) discounted to the Beginning of Year 17 calculated as followed:

(28,000 / (2% - 2.5% ) x ( 1 - [( 1+2.5%)/(1+2%)]^4 ) = $110,614

To save enough for college fee, The future value of Annuity 2 must equal the present value of Annuity 2 calculated above.

Thus, we have: 21.4123 x C = 110,614 <=> C = $4,745.6

Beverly Company has determined a standard variable overhead rate of $1.25 per direct labor hour and expects to incur 1 labor hour per unit produced. Last month, Beverly incurred 1,900 actual direct labor hours in the production of 2,000 units. The company has also determined that its actual variable overhead rate is $1.20 per direct labor hour. Calculate the variable overhead rate and efficiency variances also indicate if the variable are favorable or unfavorable the total amount of over- or underapplied variable overhead.

Answers

Answer:

(i) 95 (F)

(ii) 125 (F)

(iii) 220 (Overapplied)

Explanation:

Variable Overhead Rate Variance:

= Actual Hours × (Actual Rate - Standard Rate)

= 1,900 × ($1.20 - $1.25)

= 95 (F)

Variable Overhead Efficiency Variance:

= Standard Rate × (Actual Hours - Standard Hours)

= $1.25 × (1,900 - 1 × 2,000)

= 125 (F)

Over- or Underapplied Variable Overhead:

= Actual Overhead Incurred - Overhead Applied

= (1,900 × $1.20) - (2,000 × $1.25)

= 220 (Overapplied)

Suppose a bank customer with €1,000,000 wishes to trade out of euro and into Japanese yen. The dollar-euro exchange rate is quoted as $1.60 = €1.00 and the dollar-yen exchange rate is quoted at $1.00 = ¥120. How many yen will the customer get?

Answers

Answer:

192,000,000 yen

Explanation:

Please see attachment

The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhad and $1.30 for fixed overhead) based on 100% capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows:Actual Variable Factory Overhead: $360,000fixed factory overhead 104,000Standard hours allowed for units produced: 60,000 hoursWhat is the amount of the factory overhead controllable variance?options for both are:a) 12,000Ub) 12,000Fc) 14000Ud) 26000U

Answers

Answer:

b) 12,000F

Explanation:

Please see attachment .

The factory overhead controllable variance is calculated by comparing actual total overhead costs to standard overhead costs, resulting in a $12,000 favorable variance due to lower actual costs indicating efficient control.

The question asks for the calculation of the factory overhead controllable variance, which involves comparing the standard cost of variable and fixed overhead based on allowed hours to the actual variable and fixed factory overhead costs. The standard variable overhead is calculated as $6.20 per machine hour for 60,000 hours, resulting in $372,000. Meanwhile, the standard for fixed overhead remains constant regardless of the standard hours allowed and is based on the 100% capacity of 80,000 machine hours, which is not directly given but its actual cost is $104,000.

The actual variable factory overhead is $360,000, and the actual fixed factory overhead is $104,000. To find the controllable variance, we compare the actual total overhead ($360,000 + $104,000 = $464,000) to the standard overhead ($372,000 + $104,000 = $476,000). This results in a $12,000 favorable variance, since the actual costs were lower than the standard, indicating efficient control over overhead costs.

According to Bruce Scagel, which of the following is NOT one of the four principles necessary to ensure a successful training effort?
a. Duration: Training should be ongoing.
b. Focus: Training should be focused on a limited number of very important performance areas.
c. Mass: Training should provide the maximum payoff that is possible.
d. Value: Training should be focused on performance areas the offer the highest opportunity for payback.
e. Efficiency: Training should be produce the greatest results for the least amount of effort.

Answers

Answer:

one principle which is against the BRUCE Scagel principle for training effort is Efficiency

Explanation:

one principle which is against the BRUCE Scagel principle for training effort is Efficiency

According to the Bruce duration of the training must be long enough to provide basic knowledge to the worker. Focus should be on one goal not on the various goal. Maximum number of worker get the benefit of successful training. The main thing that Bruce focused on his principle is the value of training. He focus training on the key area of the employee to get maximum benefit out of the training.

Benny Company budgeted 610 pounds of direct materials costing​ $18.00 per pound to make​ 8,000 units of product. The company actually used 650 pounds of direct materials costing​ $30.00 per pound to make the​ 8,000 units. What is the direct materials quantity​ variance?

Answers

Answer:

-$720 unfavorable

Explanation:

The computation of the material quantity variance is shown below:

= Standard Price × (Standard Quantity - Actual Quantity)

= $18 per pound × (610 pounds - 650 pounds)

= $18 per pound × -40 pounds

= -$720 unfavorable

Simply we take the difference between the standard quantity and the actual quantity and then multiply it by the standard price so that the correct value can come

The direct materials quantity variance for Benny Company is $720 Unfavorable, calculated by multiplying the excess quantity of materials used (40 pounds) by the budgeted price per pound ($18.00).

The direct materials quantity variance is calculated by comparing the difference between the actual quantity of materials used and the budgeted amount, and then multiplying by the budgeted price per unit. The formula is as follows:

Direct Materials Quantity Variance = (Actual Quantity - Budgeted Quantity) × Budgeted Price

In this case, the budgeted quantity is 610 pounds, the actual quantity used is 650 pounds, and the budgeted price is $18.00 per pound. The variance calculation would be:

Variance = (650 pounds - 610 pounds) × $18.00/pound

Variance = 40 pounds × $18.00/pound

Variance = $720 Unfavorable

Since the company used more materials than it budgeted for, the variance is considered unfavorable.

When several different vendors and/or products are candidates and you want to solicit competitive proposals and quotes, what would you use?A) Request for proposal (RFP)B) Request for quotation (RFQ)C) Request for specification (RFS)D) Request for design (RFD)E) None of these

Answers

Answer:

A) Request for proposal (RFP)

Explanation:

Request for proposal is a document generated by a company which is basically describing its need and criteria for fulfilling the requirement by the company. In this the company demands proposals for the eligible vendors fulfilling the criteria and requirement as mentioned in the request for proposal.

When there are competitive proposals then company can prepare this and ask the vendors eligible to put there conditions and letters so that the most favorable ones can be asked to put the quotations.

You are asked to spend a week or so as the Fed chairman. It turns out to be a very interesting week. If your goal is to stabilize inflation and economic activity, what would be your response to these three events? Consider each event individually, independent from the others:

(a) a rapid rise in the stock markets rapidly increases people’s wealth.

(b) Chilean citizens get a sudden taste for Buffalo hot wings (they must be made in Buffalo).

(c) firms begin to grow anxious about the decline in consumer confidence.

Answers

Answer:

(a) A rapid rise in the stock markets that rapidly increases people’s wealth would mean that for the same level of real interest rate, output will rise because of the rise in demand for consumer goods. This will probably lead to inflation and as chair of the Fed you should raise interest rates to quiet inflation and reduce the gap.

(b) If Chilean citizens get a sudden taste for Buffalo hot wings that must be made in Buffalo, this will have a similar effect as the answer before. The answer is to raise interest rates.

(c) Firms begin to grow anxious about the decline in consumer confidence.

How would each of the following affect the U.S. money supply? Explain. 1. Banks decide to hold more excess reserves. (Excess reserves are reserves over and above what banks are legally required to hold against deposits.) 2. People withdraw cash from their bank accounts for Christmas shopping. 3. The Federal Reserve sells gold to the public. 4. The Federal Reserve reduces the interest rate it pays on deposits of depository institutions held at the Fed.

Answers

Answer:

1. This will reduce the U.S. money supply because more excess reserves to be hold which means that less amount of money lend to the public.

2. This will not affect U.S. money supply because savings account is also a part of money supply.

3.  This will reduce the U.S. money supply because there is a flow of money from public to Fed.

4. This will increase the money supply because it will be less profitable for the depository institutions to deposit at the fed. So, they start lending to the public which increases the money supply in the U.S. economy.

Consider three bonds with 6.8% coupon rates, all making annual coupon payments and all selling at a face value of $1,000. The short-term bond has a maturity of 4 years, the intermediate-term bond has maturity 8 years, and the long-term bond has maturity 30 years. a.What will be the price of each bond if their yields increase to 7.8%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) 4 Years 8 Years 30 Years Bond price$ $ $ b.What will be the price of each bond if their yields decrease to 5.8%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) 4 Years 8 Years 30 Years Bond price$ $ $

Answers

Answer:

a. What will be the price of each bond if their yields increase to 7.8%?

4 Years :  $966,73  (see example)

8 Years :  $942,09  

30 Years : $885,26  

b. What will be the price of each bond if their yields decrease to 5.8%?

4 Years :  $1,034.81 (see example)

8 Years :  $1,062.59

30 Years : $1,140.64

Explanation:

Principal Present Value  =  F /  (1 + r)^t      

Coupon Present Value   =  C x [1 - 1/(1 +r)^t] / r      

This is an example for 4 years, 7,8%, to the others years only change "t".

The price of this bond it's $740,50 + $226,23 = $966,73      

Present Value of Bonds $740,50 = $1,000/(1+0,0780)^4        

Present Value of Coupons $226,23 =  $68 (Coupon) x 3,33      

3,33 =   [1 - 1/(1+0,0780)^4 ]/ 0,0780      

This is an example for 4 years, 5,8%, to the others years only change "t".

The price of this bond it's $798,10 + $236,71 = $1,034.81      

Present Value of Bonds $798,10 = $1,000/(1+0,0580)^4        

Present Value of Coupons $236,71 =  $68 (Coupon) x 3,48      

3,48 =   [1 - 1/(1+0,0580)^4 ]/ 0,0580      

It is January 2nd and senior management of Baldwin meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing $10,000,000 in bonds. Assume the bonds are issued at face value and leverage changes to 2.7. Which of the following statements are true? Check all that apply.

A. Baldwin's long-term debt will rise by $10,000,000
B. Working capital will remain the same at $13,607,943
C. Total Assets will rise to $211,976,070
D. The total investment for Baldwin will be $13,954,930
E. Total liabilities will be $132,001,543

Answers

Answer:

Please see attachment

Explanation:

Please see attachment

Ford recently hired twenty employees to work in various departments of the company. On the first day, all twenty had the same orientation and attended the same training and development sessions. They were most likely engaged in what form of training?

Answers

Answer:

They were most likely engaged in "classroom training and lectures."

Explanation:

Classroom training method involves a facilitator passing across knowledge or information to a group of employees at the same time. The main advantage of this training method is that many employees can learn at the same time.

As the employees were hired by Ford to work in various departments, with different job functions, then it is most likely that on their first day at work, they were put through a "classroom training".

This is further buttressed by the the statement that all twenty of the employees received the same orientation and attended the same training and development sessions in one day and at the same time.

A fire destroyed most of the inventory in Mick’s warehouse on September 1. After the fire, Mick’s accounting records showed the following: Inventory, January 1 $ 55,000 Purchases, January 1 through September 1 $ 310,000 Sales, January 1 through September 1 $ 370,000 Inventory not damaged by fire $ 45,000 Gross profit percentage on sales 30 % What amount of inventory was lost in the fire?

Answers

Answer:

$61,000

Explanation:

For computing the inventory lost in fire, first we have to determine the various items like - cost of goods available for sale, gross profit, cost of goods sold and ending inventory

So, the cost of goods available for sale would equal to

= Opening inventory + purchase made

= $55,000 + $310,000

= $365,000

The gross profit would be

= Sales × Gross profit percentage

= $370,000 × 30%

= $111,000

And, the costs of goods sold would be

= Sales - gross profit

= $370,000 - $111,000

= $259,000

Now the ending inventory would be

= Cost of goods available for sale - costs of goods sold

= $365,000 - $259,000

= $106,000

And, the not damaged goods were $45,000

So, the lost goods would be

= $106,000 - $45,000

= $61,000

Bacchus, Inc. is a large, multinational corporation with various business units around the world. After a fire destroyed the corporation headquarters and largest manufacturing site, plans for which of the following would help Bacchus ensure a timely recovery?
(A) Backup power.
(B) Daily backup.
(C) Business continuity.
(D) Network security.

Answers

Answer:

The correct answer is (C)

Explanation:

Business coherence or continuity is an association's capacity to guarantee tasks and centre business capacities are not seriously affected by a disaster or spontaneous occurrence that takes basic frameworks disconnected. Business continuity arranging is the interdepartmental procedure regularly drove by data innovation, of actualising the strategies used to re-establish ordinary business in a set measure of time, characterise the measure of information misfortune worthy to the business, and impart basic data to authoritative partners during and following occurrences.

Intel reports retained earnings at the end of fiscal 2018 of $35,477 million and retained earnings at the end of fiscal 2017 of $32,138 million. The company reported dividends of $4,479 million and other transactions with shareholders that reduced retained earnings during the year by $1,802 million. How much net income did the firm report in fiscal 2018?
A) $3,339 million net income
B) $3,339 million net loss
C) $9,620 million net income
D) $9,620 million net loss
E) None of the above

Answers

Answer:

net income  = $9620

so correct option C) $9,620 million net income

Explanation:

given data

retained earnings 2018 = $35,477 million

retained earnings 2017 = $32,138 million

dividends = $4,479 million

reduced retained = $1,802 million

to find out

net income did the firm report in fiscal 2018

solution

we get reduced due to dividend and other transaction  is

reduced due to dividend and other transaction = $4479 + $1802

reduced due to dividend and other transaction = $6281

net income = retained earnings - reduced due to dividend and other transaction  .............1

net income  = $35477 -$6281

net income  = $9620

so correct option C) $9,620 million net income

Which of the following statements is correct about the provision of public goods?
Check all that apply.
O The government always provides the exact types of public goods that everyone in the society wants.
O It is hard for the government to decide the appropriate amount of public goods to produce because people have differing preferences regarding such goods.
O Majority rule is the most efficient way to determine the amount of public goods a society should produce.

Answers

Answer:It is hard for the government to determine the appropriate amount of public goods to produce because people have differing preferences regarding such goods.

Explanation:

Public goods refers to essential goods or services that are freely made available to the populace by the government, private groups or individuals.

Due to the large numbers of people, high cost, differences in preference the government cannot meet all the needs for public goods.

Majority rules may not be the most efficient way to determine the provision of public goods, for people are more likely to strive for their personal interest even if it antagonize the general interest. The needs of the people should be measured in providing public goods.

Final answer:

The provision of public goods is complex due to their nonexcludable and nonrival nature, causing it to be difficult for the government to gauge the exact public demand and appropriately allocate resources. Tools like surveys and cost-benefit analysis are used to estimate and address collective demands, which illustrates why not all statements about public goods and government provision can be deemed accurate.

Explanation:

When considering the provision of public goods, there are several accurate statements:

This statement is correct because determining the optimal quantity and type of public goods to provide is challenging due to varying individual valuations and the nonexcludable, nonrival nature of these goods. The government tends to use tools like surveys to ascertain the collective demand and applies cost-benefit analysis to accommodate the diverse needs and preferences within a society.

However, the assertion that the government always provides the exact types of public goods that everyone in the society wants is not correct due to the diverse needs and preferences among the population. Similarly, using majority rule to determine the amount of public goods a society should produce isn't always the most efficient method since it may not accurately capture the value all individuals place on different public goods.

Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $60,000 per ton, one-fourth of which is allocated to product X15. Seven thousand units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $9 each, or processed further at a total cost of $9,500 and then sold for $12 each. Required:Should product X15 be processed further or sold at the split-off point?

Answers

Answer:

Processed further

Explanation:

For taking the decision, first we have to determine the increase or decrease cost which is shown below:

Sales revenue if processed further (7,000 units × $12 per unit)                   $84,000

Less: Sales revenue at the split-off point (7,000 units × $9 per unit)  -$63,000

Increase in revenue                                                                             $21,000

Less: total cost for processing further                                               -$9,500

Financial advantage                                                                             $11,500

Since the amount is comes in positive, so it would be processed further rather sold at the split-off point

If other factors are held constant, what happens to a confidence interval if the sample variance increases?

A. The standard error increases and the width of the interval increases.
B. The range of t scores increases and the width of the interval increases.
C. The standard error decreases and the width of the interval decreases.
D. The range of t scores decreases and the width of the interval decreases.

Answers

Answer:

Someon

Explanation:

Know the answer

what is the importance of timely leadership action and communication in shaping group culture?

Answers

Answer:

Timely leadership and communication are important in shaping group culture.

Explanation:

Communication is important in building a culture it helps leader and pioneers to build up a culture of trust and can without much of a stretch form relationship with workers and different business channels that encourage associations to develop. Timely leadership and communication are two important pillars, that can work together to start a culture that will help an organisation to grow. Interaction with employees, starting group conversations and meetings can help employees to gain confidence, that will lead to a health group culture within an organisation.

The social cost of a monopoly​ ______.

(A) is equal to the value of the economic rent
(B) equals the social benefit
(C) is illustrated by a curve that would also be the supply curve of the competitive industry
(D) is greater with rent seeking than it otherwise would be

Answers

Answer:

(D) is greater with rent seeking than it otherwise would be

Explanation:

In the monopoly, the company is alone to manufacture such product and gain through it. It do not make any efforts to advertise or gain the market share, as it is the sole producer.

Also, the company is the sole producer and thus, charges high for the product, accordingly its earning more than the actual efforts made by it.

Accordingly the social cost is more with the rent seeking concept, because efforts are less.

Final answer:

The social cost of a monopoly is greater with rent seeking than it otherwise would be.

Explanation:

The social cost of a monopoly is greater with rent seeking than it otherwise would be.

Learn more about monopoly here:

https://brainly.com/question/33076874

#SPJ6

Oriole Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporation’s books disclosed the following. Beginning inventory $173,200 Sales revenue $672,900 Purchases for the year 424,200 Sales returns 24,600 Purchase returns 28,000 Rate of gross profit on net sales 30 % Merchandise with a selling price of $21,000 remained undamaged after the fire. Damaged merchandise with an original selling price of $16,100 had a net realizable value of $5,700. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.

Answers

Answer:$95,190

Explanation:. $

Opening stock. . 1 73,200

Add purchase less return

(424200-28,000). 396,200

------------

569400

Less cost of goods sold

Salers- return * 70/100

(672900-24600)*70/100=. (453,810)

-----------

Stock balance. 115,590

Less stock salvage

21000*70/100 (14,700)

Damaged realisable value ( 5700)

--------

Stock damaged by fire

95,190

Final answer:

The loss as a result of the fire is $168,857.14.

Explanation:

To compute the loss as a result of the fire, we need to calculate the cost of the damaged inventory and subtract it from the original inventory value.

The cost of the damaged inventory can be determined by multiplying the net realizable value ($5,700) by the ratio of the original selling price of the damaged merchandise to the original selling price of the undamaged merchandise ($16,100/$21,000).

This gives us a cost of $4,342.86 for the damaged inventory.

Subtracting this from the beginning inventory value of $173,200, we find that the loss as a result of the fire is $168,857.14.

The following information is available for the year ended December 31:

Beginning raw materials inventory $3,000
Raw materials purchases 4,200
Ending raw materials inventory 2,700
Office supply expense 1,600

The amount of raw materials used in production for the year is:

A. $4,500.
B. $1,500.
C. $7,200.
D. $2,900.
E. $4,000

Answers

Answer:$4500

Explanation:3000+ 4200 = 7200 - 2700 = 4500

The S&P 500 index delivered a return of 25%, 15%, -35%, and -5% over four successive years.
What is the arithmetic average annual return for four years?
A) -5%
B) 0%
C) 5%
D) 3%

Answers

Answer:

arithmetic average annual return is 0

correct option is B) 0%

Explanation:

given data

return r1 = 25%

return r2 = 15%

return r3 = -35%

return r4 =  -5%

to find out

What is the arithmetic average annual return for four years

solution

we know that arithmetic average annual return is express as

[tex]\bar{X} = \frac{\sum x}{N}[/tex]     .........................1

here [tex]\bar{X}[/tex] is arithmetic mean and ∑x is sum of return and N is number of observation i.e 4

so put here value in equation 1 we get

[tex]\bar{X} = \frac{25+15-35-5}{4}[/tex]

[tex]\bar{X}[/tex] = 0

so arithmetic average annual return is 0

correct option is B) 0%

Suppose real GDP for a country is $1,200 billion. The GDP price index is 114.6. There are 25 million workers who work 36 hours per​ week, and the real wage averages $16 per hour. What is labor productivity for this​ country?

Answers

Final answer:

Labor productivity is calculated by dividing the real GDP by the total hours worked in the economy. For this country, with a real GDP of $1,200 billion and 25 million workers working 36 hours per week, labor productivity comes out to be $25.64 per hour.

Explanation:

To calculate labor productivity, we need to first determine the total number of hours worked and then divide the real GDP by this number. Each worker works 36 hours per week, and we can assume there are roughly 52 weeks in a year, hence the total hours worked annually per worker would be 36 hours/week × 52 weeks/year = 1,872 hours/year.

With 25 million workers, the total hours worked in the economy would be :

25 million workers × 1,872 hours/worker/year = 46.8 billion hours.

Dividing the real GDP ($1,200 billion) by the total hours worked gives us the labor productivity.

Labor productivity = $1,200 billion / 46.8 billion hours

= $25.64 per hour.

Adams Corporation’s balance sheet indicates that the company has $510,000 invested in operating assets. During 2018, Adams earned operating income of $52,020 on $1,020,000 of sales. Required Compute Adams’s profit margin for 2018. Computed Adams turnover for 2018. Compute Adams’s return on investment for 2018. Recompute Adams’s ROI under each of the following independent assumptions:
(1) Sales increase from $1,020,000 to $1,224,000, thereby resulting in an increase in operating income from $52,020 to $55,080.
(2) Sales remain constant, but Adams reduces expenses, resulting in an increase in operating income from $52,020 to $54,060.
(3) Adams is able to reduce its invested capital from $510,000 to $408,000 without affecting operating income.

Answers

Answer:

Profit Margin = 5.1%

Asset Turnover Ratio = 2:1

ROI (Normal) = 10.20%

ROI (Scenario 1) = 10.80%

ROI (Scenario 2) = 10.60%

ROI (Scenario 3) = 12.75%

Explanation:

Normal Scenario

Profit Margin = Operating Income ÷ Sales Revenue for the year  

Profit Margin = $52,020 ÷ $1,020,000 = 5.1%

Asset Turnover Ratio = Sales Revenue ÷ Operating Assets

Asset Turnover Ratio = $1,020,000 ÷ $510,000 = 2 : 1

Return on Investment = Operating Income ÷ Operating Assets

Return on Investment = $52,020 ÷ $510,000 = 10.20%

Scenario 1

Return on Investment = $55,080 ÷ $510,000 = 10.80%

Scenario 2

Return on Investment = $54,060 ÷ $510,000 = 10.60%

Scenario 3

Return on Investment = $52,020 ÷ $408,000 = 12.75%

Countess Corp. is expected to pay an annual dividend of $5.29 on its common stock in one year. The current stock price is $79.83 per share.
The company announced that it will increase its dividend by 3.40 percent annually.

What is the company's cost of equity?

Answers

Answer:

10.03%

Explanation:

Using the dividend discount formula, find the cost of equity; r

[tex]r = \frac{D1}{P0} +g[/tex]

whereby,

D1 = Next year's dividend = 5.29

P0 = Current price of the stock = 79.83

g = growth rate of dividends = 3.40% or 0.034 as a decimal

Next, plug in the numbers to the formula above;

[tex]r = \frac{5.29}{79.83} +0.034\\ \\ r =0.06627 + 0.034\\ \\ =0.10027[/tex]

As a percentage, r = 10.03%

Therefore, the company's cost of equity is 10.03%

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